Purchasing a rural property, acreage estate, or farm differs from purchasing a townhouse. If you are planning to buy rural land, you should do the regular pre-contract examinations on both the home and the structures on the site, including a wood pest inspection and a building inspection, just as you would with residential property. These studies will enable you to identify any issues in the home and structures on the property that are not often considered “wear and tear.” Once the reports reveal any issues of worry, you should consult with qualified tradespeople to verify that any “issues of concern” will not cause you a large financial burden if the transaction is completed.
When deciding whether to buy a rural property, be sure that the reason you’re buying it is compatible with the usage of the land permitted by the local council and other state government departments. It might be pricey if you purchase land for aquaculture in an area that does not allow that form of agricultural activity or in an area that may contain chemical residue that will undermine your organic farming ambitions.
You may reduce the danger of hidden “surprises” on your rural property after a settlement by doing appropriate searches and inquiries and receiving relevant reports from licenced tradespeople before entering into an unconditional Contract for Sale.
Finding the right property
So say you read through our checklist and find out that the property you wanted isn’t for you anymore. Now what? You’re stuck looking again for rural properties which can be difficult to find. That’s where we recommend Lion Land Realty. Lion Land is Lion Realty’s focus on south-east Queensland acreage properties. So if you want to find some listings of property for sale then check out Lion Land Realty.
Chemicals, Diseases, Noxious Weeds Or Pests
If you want to cultivate crops or raise cattle on your recently bought land to sell to other parties, any chemical residue in the soil might jeopardise your company. Organochlorines, such as DDT, which were once widely used on farms to control pests, can linger in the soil for decades and even adhere to plants and animals.
Some illnesses can remain on the soil for long periods of time after the animals that carry them have died. Protection zones frequently ban specific farm operations if the land is damaged, which may limit your ability to maintain certain types of livestock or stock on the site at all if a considerable danger of illness remains. A land & property search from the Department of Resources will reveal some details on this.
Pests such as fruit flies and nematodes can have a negative impact on various crops. If you wish to cultivate your own crops on the property, an experienced horticulturist should undertake a complete study. Local councils will often have officers who can assist with these tests. It is also recommended to acquire a soil test to ensure that there are no chemical residues in the soil.
Weeds and pests may also be serious issues on rural land. Obtaining a search from the Department of Resources will bring any notices or orders on the property for these concerns to your attention.
Obtaining a survey of the intended property will show you the dimensions and borders of the land, which is very crucial when purchasing a rural property.
Any existing fence on the property may not have been installed correctly, giving an inaccurate picture of the true size of the land that you are purchasing. If a water source looks to be inside the property’s limits but isn’t, a survey will advise you of the error, and you may then negotiate the property acquisition with this information in hand. It may be disastrous to discover after settlement that the only supply of water “on the land” is not actually on the land you have purchased.
Uses for the Land
The local council and state government agencies such as the EPA regulate aspects of rural land use such as development, agricultural usage, irrigation, and clearance (Environmental Protection Authority). Although you are the registered owner of the land, there are certain restrictions on what you can and cannot do on it. It is therefore critical that you properly review these restrictions before purchasing the land, especially if you intend to utilise the land for a certain purpose.
You should also enquire with the relevant authorities about the rules and requirements for the land’s infrastructure, such as the construction of roads and bridges around the land to ensure that they comply with the relevant land laws.
Before committing to the acquisition of any rural land, be certain that the property has a legal right of access.
Sometimes what appears to be access to the land is only an easement or a stock passage that may be modified at any time by the true owner of the land, leaving you unable to access your land. It is especially important to obtain confirmation of legal access to the land if the land is near Crown Land areas, because what appears to be a driveway or access way to the property could actually be a “enclosed road,” and while it may look like a normal road, it is actually owned by the government and can be closed at any time, denying you access to your property.
If you are considering any “proposed” or “intended” easements or rights of way, you should obtain a copy of the land plan. It will also notify you of any easements that were not present on the land at the time of the inspection but have since been noted on a plan as approved, as these easements may have an impact on your farming in the future.
Don’t Make A Mistake When Purchasing Acreage
Rights to Water
Rural acreage that lacks access to water is less valued. You should investigate if the potential property’s water resources have been registered in accordance with local and state rules. A property that requires irrigation licences, river access, or water bores must all have the necessary licences, and information of such approvals should be included in the contract for sale. If there is a dam on the prospective property, be sure it is in conformity with the region in which you are buying.
Native Title Search
A native title search can also be obtained, which will show you whether there is a current native title claim on the land and, if so, the extent to which this may affect your farming endeavours.
Before purchasing rural land to conduct a business, you should consult with an accountant who is knowledgeable in rural taxation. He will be able to advise you on any GST and CGT consequences, as well as any other taxes difficulties that may emerge as a result of your purchase and future company operations.
Because every property is distinct, it is critical that you obtain the necessary counsel and help before and after you sign into a contract to acquire a property, whether rural or urban.
Legal specialists with experience in rural conveyancing can best assist you in ensuring that the land you intend to acquire is thoroughly researched before purchasing to ensure you are aware of potential hazards, so preserving your financial investment.